Correlation Analysis Between FFBW and Esquire Financial

Analyzing existing cross correlation between FFBW and Esquire Financial Holdings. You can compare the effects of market volatilities on FFBW and Esquire Financial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in FFBW with a short position of Esquire Financial. See also your portfolio center. Please also check ongoing floating volatility patterns of FFBW and Esquire Financial.
Horizon     30 Days    Login   to change
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Comparative Performance

FFBW  
00

Risk-Adjusted Performance

Over the last 30 days FFBW has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite fairly weak primary indicators, FFBW showed solid returns over the last few months and may actually be approaching a breakup point.
Esquire Financial  
55

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Esquire Financial Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. Inspite very weak forward-looking indicators, Esquire Financial may actually be approaching a critical reversion point that can send shares even higher in February 2020.

FFBW and Esquire Financial Volatility Contrast

 Predicted Return Density 
    
  Returns 

FFBW Inc  vs.  Esquire Financial Holdings Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Given the investment horizon of 30 days, FFBW is expected to generate 413.05 times more return on investment than Esquire Financial. However, FFBW is 413.05 times more volatile than Esquire Financial Holdings. It trades about 0.71 of its potential returns per unit of risk. Esquire Financial Holdings is currently generating about 0.08 per unit of risk. If you would invest  0.00  in FFBW on December 21, 2019 and sell it today you would earn a total of  1,075  from holding FFBW or generate 9.223372036854776E16% return on investment over 30 days.

Pair Corralation between FFBW and Esquire Financial

-0.03
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy3.23%
ValuesDaily Returns

Diversification Opportunities for FFBW and Esquire Financial

FFBW Inc diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding FFBW Inc and Esquire Financial Holdings Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Esquire Financial and FFBW is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on FFBW are associated (or correlated) with Esquire Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Esquire Financial has no effect on the direction of FFBW i.e. FFBW and Esquire Financial go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.